To mark the 50th anniversary of the end of World War II, Japan's coalition government patched together a proposed parliamentary resolution Tuesday expressing "deep self-reflection" over this nation's past. The "negotiated apology" omitted the word apology on the insistence of the Liberal Democratic Party, whose antecedents led Japan during the war.

The contest for the top post in the world's No. 2 economy may come to a choice between bland and spicy. Keizo Obuchi, a leading candidate to become Japan's next prime minister, is an insider known as a consummate conciliator. Seiroku Kajiyama, the other favorite, is a far more colorful reformer whose aggressive, outspoken ways have earned him plenty of enemies.

In an unusually aggressive display of its power over Japan's auto industry, the Japanese government is pressuring the nation's auto companies to refrain from expanding their manufacturing operations in Japan for fear of further damaging trade relations with the United States.

The strains caused by Japan's enormous government spending spree sent interest rates sharply higher and stocks reeling Tuesday, further undermining prospects for a turnaround in the world's second-largest economy. Japan's bellwether 10-year government bond saw its biggest one-day price decline ever, sending its annualized yield to 1.94% from 1.5% Monday, after the Ministry of Finance's trust fund said it would quit buying bonds--leaving few takers in sight.

Thirteen years ago, David Halberstam's "The Reckoning" explored the changing industrial fortunes of Japan and the United States through the rise of Nissan Motor Co. and the decline of Ford Motor Co. The book portrayed Nissan as a determined, customer-driven company that made U.S. inroads with high-quality, sporty cars. In contrast, Ford was depicted as a faltering, risk-averse concern run by accountants absorbed with profit and stock value rather than emotion-stirring vehicles.

For the first time in its 38-year history, the ruling Liberal Democratic Party failed to win a majority in the powerful lower house of Parliament in an election that creates a new political framework for Japan. The outcome in Sunday's election, however, was better than the ruling party feared a month ago when 48 of its representatives walked out to form alternative conservative parties. As for the leftist opposition, the results were far worse than it had hoped.

In a move that could worsen trade tensions and affect tens of millions of dollars in California exports, Japan on Thursday announced a sudden change in its rice policy aimed at further shielding inefficient farmers from outside competition. Midway through a seven-year global trade agreement, Japanese bureaucrats decided to switch to a tariff system that will effectively lower its rice imports by as much as 10% annually while setting the stage for a tax as high as 1,000%.

Ruling party officials eager to shore up their battered organization opened talks Thursday on a successor to resigning Japanese Prime Minister Sosuke Uno. Secretary General Ryutaro Hashimoto, the party's No. 2 official, appeared to have won the support of many party leaders, although some believe that at age 51 he is too young to take the job while the party is in crisis, one official said. The Liberal Democratic Party officials decided that a replacement should be picked Aug.